About Our Report
Message From The CEO
CCI At a Glance
CCI’s Journey of Sustainability
Performance Highlights
Integrating Sustainability
Sustainability Across the Value Chain
Governance
me
we – Employees
we – Community
world
Performance Indicators
Glossary
CCI Reporting Guidance
GRI G4 Content Index for “In Accordance: Core”
Independent Assurance Letter
Greenhouse Gas Verification Statement
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Table of Contents
About Our Report
This is the sixth Sustainability Report published by Coca-Cola İçecek (CCI). This report includes our practices and performance results obtained during the period 1 January 2013 to 31 December 2013 for four of the ten countries where we operate: Azerbaijan, Jordan, Kazakhstan and Turkey. In the report, we refer to these countries as our "four countries of operation." In addition, we have provided examples of best practices from our Pakistanoperations.
Standards Used
In preparing this report, we were guided by the three principles of the AA1000 Assurance Standard: materiality, inclusiveness and responsiveness. We measure and report our social, environmental and ethical performance using leading standards and methodologies such as those adopted by the Global Reporting Initiative (GRI) G4, CDP, International Labor Organization (ILO), United Nations Convention Against Corruption (UNCAC), and WRI Greenhouse Gas (GHG) Protocol.
The contents of this report have been prepared in accordance with the G4 Sustainability Reporting Guidelines of the Global Reporting Initiative (GRI). The report corresponds to the “Core” level in the G4’s reporting standards, and also serves as our Communication on Progress (COP) to the United Nations Global Compact (UNGC).
Verification
For the third consecutive year, certain data in this report were independently audited. The GHG emissions of CCI Turkey's manufacturing, sales and distribution operations for 2013 were audited, as last year, by a third party auditing organization, SGS, and verified in accordance with the International Organization for Standardization’s ISO 14064-3 2006 Standard as meeting the requirements of ISO 14064-1. CCI’s Turkey operation has successfully passed the audits. Both GHG Protocol’s Scope 1 (direct GHG emissions from stationary combustion, mobile combustion, process emissions, fugitive emissions), and Scope 2 (indirect emissions such as those arising from purchased electricity) emissions were verified as
In addition to this verification, the selected information as defined in the Independent Limited Assurance Report on page 96 of this report received limited assurance from EY. In 2013, we obtained for the second time limited assurance on Selected Information* from four of our international operations: Azerbaijan, Jordan, Kazakhstan, and Turkey. The Selected Information covered total energy data, per-product energy use, total water data, per-per-product water use, per-product total waste produced, and total waste recycling rate as described in the CCI Reporting Guidance included on pages 85 and 86 of this report. Within the context of this audit, 2013 data from CCI’s Azerbaijan, Jordan, Kazakhstan, and Turkey plants was assessed to reach a limited assurance conclusion in accordance with the international standard
‘Assurance Engagements Other Than Audits or Reviews of Historical Financial Information’ (ISAE 3000).
Feedback
Collecting stakeholder feedback is vital for helping us improve both our practices and reporting processes. We closely examine every issue that comes to our attention, and we use any feedback from our stakeholders to continuously improve our practices. We invite our stakeholders to forward any opinions, suggestions or complaints to
Message From
The CEO
We are very pleased to share with you our sixth sustainability report. Since our first report, we have made considerable progress towards improving our sustainability performance and reporting. This year, for the first time we have used the G4, or most recent, version of the Global Reporting Initiative’s Sustainability Guidelines. This report includes sustainability
performance and practices of our Azerbaijan, Jordan,
Kazakhstan, and Turkey operations which account for approximately 70% of our total business volume. Additionally, we have also included examples of best practices related to our Pakistan operations.
In line with the G4 Guidelines, we strive to respond
to the information needs and expectations of our
stakeholders and focus on the issues that are deemed most material to our company and our stakeholders.
In this context, material issues include those through
which we have the most impact and can make a
difference not only in our own operations but also in those of our suppliers and others along our supply
chain. To maintain a current list of material issues, we used various stakeholder engagement platforms including internal materiality analysis workshops, stakeholder engagement panels, and stakeholder reputation surveys during 2012 and 2013. In addition, for the second consecutive year, we have covered all
four countries in the scope of assurance of our main
environmental performance indicators.
In 2013, CCI continued its steady course of growth. In
yet another year of economic challenges and political instability in many parts of the world, we remained firm
and managed to improve on most major indicators. CCI grew consolidated volume by 13.0% in 2013, marking
another milestone by exceeding 1 billion unit cases in
total sales. Our international operations reported growth of 31.7%, led mainly by Pakistan (99%), Iraq (55%), and Kazakhstan (11%). Consolidated net sales grew 16.6% to TL 5.186 billion, with international sales increasing by 26.2% and sales in Turkey by 5.6%. We also grew consolidated EBITDA to 892 million TL, an increase of 22.2% over 2012.
Moreover, we made significant progress in 2013 in terms of our sustainability journey. Our
sustainability-related efforts fall under three broad categories: me, we,
and world. We also put great effort into enhancing the
sustainability performance of our suppliers, distributors, customers, and others along our supply chain, as well
as our own plants.
me: Enhancing personal well-being Product safety and quality remains one of our top
priority areas. We adhere to The Coca-Cola Company’s core operating safety and quality requirements known
as KORE whilst continuing to pursue other international
standards. In addition, we continue to provide transparent nutrition information.
In every country where we operate, we continue our efforts to raise awareness of the benefits of active healthy lifestyles. For instance, in 2013 we kicked off “3.2.1 Move!” in 44 schools across Turkey, inspiring
more than 40,000 young people to be more physically
active. In 2014, we plan to kick-off “3.2.1 Move!” program in Pakistan and Iraq. In other countries, similar projects were carried out, such as Azerbaijan’s “Active
Family, Healthy Community” promoting family sport by
engaging parents and children in physical activity in a family environment. In its first year, the program reached
more than 5,000 parents and 35,000 school children
from 60 schools in 10 districts.
we: Building stronger communities
Our employees have always been key to our success,
and they will continue to be so during our journey
towards 2020. We continue to invest in our people and
build capabilities ahead of opportunities in order to
build a world class organization. In 2013, we introduced our iLead leadership training program to cultivate CCI’s
future leaders, and we established our Organizational
Development Forum. In addition we announced our new Ethics Code, Workplace Rights Policy, and CCI Ethics Service.
2013 was a significant year for our progress towards
improved occupational health and safety (OHS). We
published an OHS policy and launched the CCI Golden Rules Communication Campaign to increase OHS
awareness among our employees. Thanks to our training and awareness activities, we reduced our Lost Time Incident Rate from 0.89 to 0.55 in the four countries of operation. Despite this success, fleet safety remains an area where we strive to improve our performance. In 2013 we continued to support local communities. We donated 3% of our pre-tax profits, or TL 1.5 million, to The Anadolu Foundation for charitable causes. In
addition, we continued to support Coca-Cola Life Plus
Foundation in Turkey in its efforts related to promoting active lifestyles and protecting the environment. In Kazakhstan 1,500 unemployed women are now participating in the Coca-Cola Belestery Program. The
aim of the training program is to support women’s economic empowerment by teaching the basics of
establishing and running a business.
In addition, many of our plant employees throughout
our operating region continued to support various community investment projects.
world: Environment
Also in 2013, we took important steps to further reduce our environmental footprint. By continuing to implement Operational Excellence (OE) projects and best practices and by making additional investments, we try hard to achieve the ambitious reduction targets we have set for our operations. Improving our energy use ratios (EUR) and water use ratios (WUR), reducing greenhouse gas (GHG) emissions, and increasing total waste recycling rates remain key target areas for our operations. We achieved our waste recycling and GHG goals for 2013, but we were unable to achieve our EUR and WUR goals. We will continue to work to improve our performance in
energy and water efficiency in all of our manufacturing
operations.
CCI was recognized by CDP as one of the carbon
disclosure and performance leaders of 2013 in Turkey. We extend our energy-efficiency and carbon emission
reduction efforts to our customers by continuously
investing in more efficient coolers. In 2013, we helped our customers save more than 165,000 tons
of carbon dioxide (CO2) emissions by switching to
Energy Management Devices in Azerbaijan, Jordan, Kazakhstan, and Turkey.
With respect to our target to reduce our water footprint, all four countries made substantial improvements in 2013. In Jordan, in particular, we achieved
approximately 42% water saving per liter of product as a
result of efficiency projects implemented between 2006
and 2013. In addition, our Pakistan operation achieved
a reduction of 306,551 m3 as a result of implemented water efficiency projects. Looking ahead, we will continue to implement OE projects to reduce every drop we use, and we will participate in the Water Disclosure Project in Turkey in 2014.
Our efforts to reduce our environmental footprint and to improve our sustainability performance have been recognized, and as a result, we have received a number of awards. For example, CCI has been named as one of Turkey’s carbon disclosure and performance leaders by the Carbon Disclosure Project Turkey. Our Elazığ plant achieved Gold status in the US Green Building Council’s LEED v2009 “Existing Building” category. In addition, our Ankara plant was awarded as “Best Performing Plant for Quality” and Izmir as “Best Performing Plant for the Environment” for their 2013 performance in the 2014
CCI became a signatory to the United Nations Global Compact in 2009, and since then we have been committed to integrating the Initiative’s ten principles related to the environment, human rights, labor and workplace rights, and anti-corruption measures into our overall business strategy. We eagerly embrace these
principles, and we will continue to implement them
in our business practices. In 2013, CCI was selected for inclusion in the new UN Global Compact 100 stock index. We are very delighted that both CCI’s financial
performance as well as its commitment to sustainability
are recognized by the UNGC and international investor community.
We are confident that with the commitment and drive from our employees, combined with feedback and guidance received from other stakeholders, CCI will continue to succeed and achieve even better results as we progress along our sustainability journey.
Sincerely,
Burak Başarır, CEO
CCI At a Glance
Coca-Cola İçecek (CCI) is the sixth-largest bottler in the Coca-Cola System in terms of sales volume. CCI produces, distributes and sells sparkling and still beverages of The Coca-Cola Company (TCCC) across Azerbaijan, Iraq, Jordan, Kazakhstan, Kyrgyzstan, Pakistan, Syria, Tajikistan, Turkmenistan, and Turkey.
CCI employs 11,000 people and has a total of 23 plants, offering a wide range of beverages to a consumer base of close to 370 million people. In addition to sparkling beverages, the product portfolio includes juices, waters, sports and energy drinks, teas and iced teas. CCI’s shares are traded on Borsa Istanbul (BIST) under ticker symbol “CCOLA.IS” while its American depositary receipts (ADRs) are traded over the counter in the United States under “COLAY” and its Eurobonds on the Irish Stock Exchange under “CCOLAT.”
Sales Volume
1,057.7 unit cases
0.9% TURKEY (unit cases) 5.6% TURKEY (million TL) 9.0% TURKEY (million TL) 10.2% TURKEY (million TL) 26.2% INTERNATIONAL (million USD) 53.5% INTERNATIONAL (million USD) 40.6% INTERNATIONAL (million USD) 13.0% CONSOLIDATED (unit cases) 16.6% CONSOLIDATED (million TL) 22.3% CONSOLIDATED (million TL) 22.2% CONSOLIDATED (million TL)Sales Volume Increase
13.0%
Net Sales Increase
16.6%
EBIT Increase
22.3%
EBITDA Increase
22.2%
Net Sales
5,186.4 million TL
EBIT
594.0 million TL
EBITDA
892.1 million TL
2012 2013 31.7% INTERNATIONAL (unit cases)TURKMENISTAN KYRGYZSTAN KAZAKHSTAN TAJIKISTAN TURKEY AZERBAIJAN SYRIA IRAQ JORDAN PAKISTAN
10
23
>
11,000
>
650,000
Countries
Employees
Customers
Factories
CCI AT A GLANCE
Population (2013) millions(2) GDP per-capita ($) (2013)(2) Percentage of population below the age of 30 (2013)3 Per-capita consumption of sparkling beverages (L) (2013)(4) CCI's market share in sparkling beverages (2013)(5) Turkey Pakistan Kazakhstan Azerbaijan Iraq Jordan Turkmenistan Kyrgyzstan Syria TajikistanSource: (1)TUIK, (2)IMF, (3)UN, (4)CCI and TCCC Estimation, (5)Nielsen, (6)CCI Estimation, (7)Retail Zoom
76,7(1) 184,4 16,9 9,7 34,9 6,6 5,3 5,6 21,6 7,2 15.264 3.144 14.133 10.789 7.132 6.116 9.669 2.533 4.843(6) 2.337 50% 64% 50% 49% 69% 65% 58% 60% 63% 67% 44 17 38 26 43 50 36 23 13 8 1 2 1 1(6) 2(7) 2(6) 1(6) 1(6) -2(6)
6 Coca-Cola İçecek Sustainability Report 2013
• Turkey’s Ankara plant is
awarded as the Best Performing Plant for Quality and CCI’s Izmir plant is awarded as the Best Performing Plant for the Environment in 2014 TCCC EAG President’s Sustainability Awards. CCI’s Kazakhstan, Jordan and Azerbaijan plants were finalists.
• Awarded the Grand Prize in the ÇEVKO Green Dot Industry Awards which recognizes companies with environmentally-sustainable practices.
• CCI’s Corporate Governance Rating score as measured by SAHA increased to 9.25 from 8.8 (as of 1 July 2014). • Turkey’s Elazığ plant achieved
LEED v2009 Gold Certificate in the existing building category. • CCI's 2012 sustainability
report is shortlisted in Ethical Corporation’s Responsible Business Awards - Best
Sustainability Report category in July.
• All plants in all operating countries complete Top 10 Energy-Saving Challenge Program.
• Receives Ethics Award from Ethical Values Center Association (EDMER).
• Wins three prizes at 2013 TCCC EAG President’s Sustainability Awards including the Best Country Bottling Operation Grand Prize, the Best Performing Plant for Quality, the Best Performing Plant for the Environment. • Announces its new Code of
Ethics, Workplace Rights Policy and CCI Ethics Service.
• Turkey receives ISO 14064-1 certificate.
• Becomes the first and the only company in Turkey and within TCCC system to be included in the UN Global Compact 100 Index. • Named as one of Turkey’s
carbon disclosure and
performance leaders by CDP in its “Turkey 100 Climate Change Report 2013.”
• Turkey is awarded a “Gender Equality Certification” by KAGIDER.
• Turkey’s Hazar plant becomes operational.
• CCI’s fifth sustainability report is published in accordance with GRI’s A+ application level.
• Recognized as one of the two top carbon performance leaders of 2012 in Turkey by CDP. • Izmir and Mersin plants
complete the Top 10 Energy-Saving Challenge of TCCC and WWF.
• Named among the best sustainable development practices representing Turkey in the Rio+20 Innovation Competition.
• Ankara plant takes EFQM’s “Taking Responsibility for a Sustainable Future” prize. • Fourth CSR report is approved by
the GRI as an A+ level report. • Turkey, Azerbaijan and Jordan
operations are among the finalists in TCCC Eurasia and Africa Group President’s Sustainability Awards. CCI Turkey wins Best Country Bottling Operation Grand Prize. Ankara plant recognized as the Best Performing Plant for
CCI’s Journey of Sustainability
The First Half of 2014
2012
2013
Quality and the Izmir plant as the Best Performing Plant for the Environment.
• Ankara plant receives KalDer National Quality Award.
• Jordan wins Occupational Health and Safety Management Award. • Third CSR report is published
and includes operations in Turkey, Kazakhstan, Jordan, and Azerbaijan.
• Becomes a charter member of the Climate Change Leaders Group.
• Becomes Turkey’s first food company to participate in the Carbon Disclosure Project and one of the country’s five carbon disclosure leaders.
• Signs the 2° Communiqué against climate change.
• Defines 2020 Vision and Strategic Framework.
• Izmir plant wins TCCC Eurasia & Africa Group President’s Environmental Award. • Wins TCCC Eurasia & Africa
Group Environment Award for Best Country Bottling Operations.
• Ankara plant wins KalDer National Quality Achievement Award.
• Publishes second CSR report which includes Jordan and Kazakhstan operations and becomes Turkey’s first GRI B-level report.
• Places first in Accountability Rating in Turkey.
• Signs the United Nations Global Compact.
• Bursa plant receives 4-Star recognition for excellence.
• Establishes CCI Corporate Governance Committee.
• First CSR report is published and becomes the first GRI-approved CSR report in Turkey.
• Implements 6 Sigma projects. • Places fifth place in
Accountability Rating in Turkey.
• Ankara plant receives first ISO 22000 Food Safety Quality Management System certification.
• Izmir plant receives first HACCP TS 13001 Food Safety Quality Management System certification.
• Ankara plant wins TCCC Eurasia Africa Group Presidency Quality Award.
• Ankara plant receives first OHSAS 18001 Occupational Health and Safety Management System certification.
• First environment policy is put in place.
• Receives first ISO 14001 Environmental Management System certification.
• Mersin plant obtains first ISO 9001 Quality Certificate and The Coca-Cola Quality System (TCCQS) Certificate of Compliance.
• Signs up to TCCC water usage savings commitment.
CCI’S JOURNEY OF SUSTAINABILITY
2011
2010
2009
2008
2007
2006
2004
2003
2002
1997
1994
SUSTAINABILITY REPORT 20128 Coca-Cola İçecek Sustainability Report 2013
Performance Highlights
in 2013
SUSTAINABILITY ACROSS THE vALUE CHAIN
me - ENHANCING PERSONAL wELL-BEING
Thanks to our OE (operational excellence) Program, we identified
and implemented
168
OE projects
and improvements thatare worth about
19.7
million USD.As CCI we submitted
17
projects
toThe Coca-Cola Company’s Quality & Food Safety
Award.
19.7
million
USD
Consumer Well-Being Product Safety and Quality
Active, Healthy Living:
Average success rate for SGP (Supplier Guiding Principles)
audits at suppliers was
84
%
.84%
we - BUILdING STRONGER COMMUNITIES
81,453
employee-hours training
wasgiven, corresponding to 18.9 hours of training per employee.
Donated
3%
of our
pre-tax profits,
equivalent of TL 1.5 million, to The Anadolu Foundation.Wereduced the LTIR (Lost Time Incident Rate) from
0.89
to0.55
achieving a
38 %
improvement.15,597
employee-hours OHS training,
corresponding to 3.6 hours per employee.1,500
unemployed
women
have been engaged in the Coca-Cola Belestery Program in Kazakhstan. Workplace Community5,500
employees
from all countries of operation participated in the “Coca-Cola Ambassador” training programs.Program kicked off in Turkey at 44
schools, inspiring
40,000
young people
toPERFORMANCE HIGHLIGHTS IN 2013
world - PROTECTING THE ENvIRONMENT
3,972 employee-hoursof environmental training was provided to our employees in Turkey, Jordan, Kazakhstan, Azerbaijan, and Pakistan.
Sold
4.5
million returnable glass bottle inTurkey as of 2013.
Saved
29.4
tons of glass with returnableglass bottle in Turkey as of 2013.
Saved
2,607
tons of PET material in Turkey,We increased
total waste recycling rate
to96 %
in Turkey,94.7 %
in Jordan,90.3 %
in Kazakhstan and99 %
in Azerbaijan.We started
trial use of PlantBottle
packaging
for Damla in 2013 andplan its distribution in 2014 in Turkey.
57 %
of all coolers in Turkey areHFC-Free coolers
(81% of new purchases).77 %
of our coolersare equipped with EMD
in Turkey,
29 %
in Kazakhstan,5 %
in Jordan and0.5 %
in Azerbaijan.In 2013, we achieved total energy saving of
55,660,462
MJ
through theOE projects conducted at our plants in Turkey, Kazakhstan, Jordan, Azerbaijan and Pakistan which is equal to 0.7 times the annual energy use of our Izmir plant. Through
these savings we managed to prevent 5,670 tons of CO2 emissions equivalent to the
amount of CO2 that
472,500
trees
extract annually from the environment.By installing EMDs in our coolers in Turkey, Jordan, Kazakhstan and Azerbaijan, we prevented:
165,289
tons
of CO2 emissions in 2013.360,322
tons
of CO2 emissions between 2009-2013.Thanks to our eco-friendly coolers,
in 2013 we managed to prevent CO2
emissions equivalent to the amount of
CO2 that
13.8
million trees
extract annually from the environment.Between 2006-2013, we achieved a water use
reduction rate of
19 %
in Turkey42 %
in Jordan21 %
in Kazakhstan9 %
in Azerbaijan3,972
Sustainable PackagingEnergy Efficiency & Climate Protection at Coolers
Energy Efficiency & Climate Protection at Plants
Water
In 2013, we replenished in total
665
million liters of water
in Turkey, equal to the consumption
INTEGRATING SUSTAINABILITY
Building Blocks of our Culture: • Trust in each other
• Focus on the customer • Embrace your work • Inspire innovation • Collaborate for success • Be agile
• Be participative • Enjoy working
Be the outstanding beverage company leading the market, inspiring people, adding value through excellence.
Build a sustainable and profitable business by refreshing consumers, partnering with customers, delivering superior value to shareholders and being trusted by communities.
Passion: We put our heart and mind into what we do.
Accountability: We act with a high sense of responsibility and hold ourselves accountable.
Integrity: We are open, honest, and ethical, and we trust and respect each other.
Teamwork: We collaborate for our collective success.
Vision
Mission
Values
CCI 2020 vision & Strategic Framework
10 Coca-Cola İçecek Sustainability Report 2013 People and Organizational
Leadership
Commercial Leadership Supply Chain
Operational Excellence
Sustainability
Build a highly capable organization and be the employer of choice.
Profitably deliver superior value to consumers and customers at the optimal cost to serve. Be the best-in-class consumer demand fulfillment organization that exceeds customer expectations, highest in quality and lowest in cost, in a sustainable, socially-responsible manner.
Create a culture of Operational Excellence to support continuous improvement of our business process and systems.
Ensure the long-term viability of our business by being proactive and innovative in protecting the environment and be recognized as one of the most responsible corporate citizens by all stakeholders.
Our key strategies:
1. Embed sustainability in our culture to achieve our commitments
Environment: Minimize our carbon footprint and water usage by reducing packaging, water and energy.
Marketplace: Consistently provide the highest quality and food safety compliant beverages.
Workplace: Ensure a safe place to work, respecting human rights and be fully compliant with workplace rights.
Community: Make a difference in our local communities by encouraging employee volunteerism and by corporate involvement.
2. Develop all employees and business partners a desire to become proud ambassadors of our products and company.
Our Goals CCI Target Fields
Sustainability Management
An integral part of CCI’s operational framework, sustainability is managed together with our core business strategy so as to be effectively deployed throughout every layer and level of the organization. The CCI Board of Directors’ Corporate Governance Committee has ultimate responsibility for the determination and implementation of the sustainability strategy. This responsibility isundertaken by the CCI Executive Committee, headed by the CEO, and comprised of senior management. The fundamental role of the Executive Committee is to identify long-term sustainability targets and monitor performance against those targets. CCI function heads integrate sustainability targets (set by CCI Executive Committee) into their respective functional objectives.
All CCI function heads play a critical role in making sure that sustainability management is connected to field operations. The strategic orientation and objectives that emerge from upper level management processes are conveyed to functional management in order to be transformed into field applications. The CCI Corporate Affairs function is responsible for communicating sustainability targets and performance results.
Moreover, our employees are key enablers allowing CCI to integrate sustainability into its business practices. Our technical operators, in particular, play a significant role in achieving “supply chain” and “operational excellence” targets with improvements they make in production processes by maintaining maximum levels of operational efficiency,
maintenance, and quality while maintaining minimum levels of waste, energy and resource consumption, and environmental impact. We work to embed a sustainability culture throughout CCI operations by recognizing our employees through awards programs such as Innovation Competition and Community Champions.
CCI’s Roadmap For Sustainability Reporting
We employed an external review committee to review CCI's Sustainability Report, and we aim to extend our reporting scope in terms of geographical operations starting with our 2014 report.
INTEGRATING SUSTAINABILITY
Materiality analysis to determine key sustainability pillars
2010
Extend reporting scope in terms of operational country Update of the materiality analysis
2011-2012
Stakeholder panel to review CCI CSR 2011 Report2013
Stakeholder Mapping workshop2013
Materiality analysis in line with GRI G4 Review of sustainability report by an External Report Review Committee12 Coca-Cola İçecek Sustainability Report 2013
Sustainability Approach
Based on CCI’s 2020 Vision and Strategic Framework, sustainability is identified as one of the five main pillars that our company is built on. Our overall sustainability goal is “to ensure the long-term viability of our business by being proactive and innovative in environmental protection and to be recognized as one of the most responsible corporate citizens by all stakeholders.” In tandem with this approach, CCI’s sustainability strategy focuses on issues that are material for our stakeholders as well as for our company.
Our sustainability framework – what we call “me, we, world” – is our shared vision for how we can work together to create social value, enable positive change for the consumers and communities we serve, and help preserve our environment. While this framework was developed by TCCC, CCI has adapted it to suit our needs. Under this framework, we have identified nine material areas that we manage closely, which are listed in the table below.
The contents of our sustainability report reflect our commitments and progress regarding these areas.
CCI’s Sustainability Framework and Core Sustainability Areas
world - Protecting the environment
we - Building stronger communities
me - Enhancing personal well-being
Product Safety and Quality:
We aim to maintain high safety and quality requirements of our products.
Consumer Well-Being:
We commit to offering low -or no- calorie beverage options in our markets; providing transparent nutrition information, featuring calories on the front of all of our packages.
Active, Healthy Living:
We commit to helping people get moving by supporting physical activity programs.
Responsible Marketing:
We aim to market responsibly, including no advertising to children under 12.
Workplace:
We aim to provide a fair and safe working environment for our employees while implementing projects and programs that support personal and professional development.
Community:
We aim to support sustainable development in communities where we operate and contribute to the welfare of those who live in those communities.
Energy Management And Climate Protection:
We aim to reduce the amount of energy we consume, to minimize our carbon footprint, and to be a leading company in climate protection while working with key stakeholders including representatives of local communities, universities and governments.
Water Management:
We aim to implement sustainable water management model key business strategy is based
on and minimizing our water footprint as well as reducing the amount of per-product water we
consume in all operations.
Sustainable Packaging:
We aim to minimize the environmental impact of packaging and to increase the use of recycled and bio-based materials.
INTEGRATING SUSTAINABILITY
Materiality G4-18, G4-24, G4-25, G4-26, G4-27When deciding which issues to report on, we take into account issues that are material for our sector, our company, and our stakeholders. We derive the contents of our report from a number of different stakeholder engagement initiatives as well as desktop studies as explained below. We also make use of GRI’s four Principles for Defining Report Content (Sustainability Context, Materiality, Stakeholder Inclusiveness and Completeness) when developing the contents of our report.
Using TCCC’s global sustainability framework as a guide, we conducted a materiality analysis in 2010 in order to identify our key sustainability pillars, and in 2011 we conducted various studies to update our list of material issues.
In February 2013, with the participation of key opinion leaders and participants from academia, civil society and government, we organized an external stakeholder panel with the aim of reviewing our 2011 sustainability report to increase our overall environmental and reporting performance. Following the panel discussion, short-term, mid-term and long-term goals were set for a number of sustainability issues. We implemented a number of the issues throughout 2013. The table below summarizes those issues on which we made progress in 2013:
Stakeholder Reputation Survey
At the end of 2013 and the beginning of 2014, we conducted for the first time an extensive stakeholder survey of our corporate reputation and perception by canvassing the opinions of more than 2,600 people, including our managers, our white and blue collar employees, national and local opinion leaders (from NGOs, academia and government agencies), members of the local community and the neighboring facilities and residents of Turkey.
A third-party independent market research company conducted the survey – in line with the 2013 EFQM model – mainly through face-to-face interviews, and also though an online questionnaire. The survey sought to measure the perception of our stakeholders regarding CCI’s performance on reducing environmental impact, social investment, workplace conditions, financial stability, product and service quality, management quality and similar. In addition, we also asked opinion leaders to indicate sustainability topics that they consider to be material to CCI. They were also asked to provide their opinions about those issues of which CCI should take ownership. Some of the issues that were raised as important by more than one stakeholder group included water use, energy efficiency, product safety, and health and safety.
Including strategic suppliers’ performance for environmental performance in the report.
Establishing an External Report Review Committee.
Improve the communication of the report and design with better storytelling and easy-to-understand expressions.
We provided detailed information about how we support our strategic suppliers in their sustainability efforts. We are working with TCCC in order to develop tools and systems to measure the carbon footprints of our suppliers. There is a plan to calculate product-based carbon footprints on a business unit level, including Turkey, throughout the TCCC system. We are investigating alternative methodologies to calculate our Scope 3 emissions. In 2013, we estimated our Scope 3 emissions with regard to business travel and employee commuting, and we shared a few examples with regard to emissions of third-party fleets and suppliers. We plan to calculate in 2014 the energy and fleet-related Scope 3 emissions of our distributors.
We will receive an external committee review and implement its suggestions for improvement in 2015.
We began in our 2012 CSR report including graphics, and we continue to improve the design of our report.
We prepared this report in compliance with GRI’s G4 standard at core level, including using an easy-to-understand format.
Our progress
Main expectations expressed at the external stakeholder panel
14 Coca-Cola İçecek Sustainability Report 2013
The results of the survey indicate that CCI’s reputation management score is 75.3 out of a possible 100. Note that in order to make an objective comparison, this score does not include the opinion of our employees. When we include the opinions of our employees, CCI’s reputation management score increases to 77.7. We scored higher than one of Turkey’s selected benchmark companies, and we scored lower than two of the other competitors.
Stakeholder Mapping Workshop
CCI’s Corporate Affairs team, with the participation of managers of key business functions, was responsible for identifying key stakeholders and devising engagement plans in 2013. In this capacity, a comprehensive stakeholder-mapping workshop was held with the participation of all CCI Turkey business units, HQ, plants, and the commercial team. AccountAbility’s AA1000 SES Standard and the EFQM Business Excellence Model were utilized in mapping and prioritizing our stakeholders. In this workshop, we updated the engagement methods and the frequency of engagement with our key stakeholders.
G4 Materiality Analysis G4-19, G4-20, G4-21
At the beginning of 2014, we conducted a materiality
analysis with our senior managers of various business functions. They shared not only their own opinions of what is important for CCI but also the expectations of stakeholders with whom they are in continuous communication. Before identifying the most material issues to report on, we conducted a stakeholder mapping exercise. To focus our reporting efforts, we identified those stakeholders who are more likely to read our report. Within the context of sustainability reporting, our key stakeholders in the order of importance are: investors, NGOs, opinion leaders, shareholders, financial institutions, our employees, and TCCC system. In the second part of the workshop, we assessed a long list of issues regarding their relevance and importance for our stakeholders as well as regarding their impact for our business. The list contained issues of the GRI G4 Guidelines and issues that reflect broad-based societal expectations, especially in relation to a company operating in the food and beverage sector. The results of the materiality analysis conducted with managers were also assessed against the results of the corporate reputation survey. Based on the evaluations, a final materiality matrix was developed and is illustrated below.
NOTE: The issues that are highlighted in red are also material for our supply chain.
NOTE: The issues given in the quadrants above are not listed in terms of importance.
Significance of Environmental, Social and Economic Impact
4.0 4.6
Influence on Stakeholder Assessment and Decision
Low
Low
• Product Quality
• Consumer Health and Safety and Well-Being • Occupational Health and Safety
• Energy Efficiency and GHG Emissions • Packaging and Waste
• Water (Use & Wastewater) • Compliance
• Business Ethics
• Supplier and Distributor Assessment • Indirect Economic Impact
• Diversity and Equal Opportunity • Community Engagement High High • Corporate Governance • Anti-competitive Behavior • Economic Performance • (Raw) Materials Sourcing • Transport
• Labor Conditions
• Child Labor and Forced Labor • Training and Education
• Freedom of Association and Collective Bargaining
• Enviromental, Human Rights and Labor Practices Grievance Mechanisms • Lobbying
• Biodiversity • Customer Privacy • Indigenous Rights • Security Practices
• (Human Rights) Assessment
• Investment and Procurement Practices • Equal Remuneration for women and men • Supplier Assessment for Impacts on Society • Grievance Mechanisms for Impacts on Society • Financial Assistance Received from Governments
INTEGRATING SUSTAINABILITY
Those issues listed in the top right corner of the matrix are material issues, relevant to most of our stakeholders and important for the success of our company. These issues have relatively high environmental, social or economic impact and therefore are included in our priority list for managing and improving our performance. This report focuses on these material issues.
Issues that are important to some of our stakeholders, or issues which we believe have less impact on our business, are listed in the middle of the materiality matrix. We actively monitor and manage these issues and communicate our actions and performance through different media, including our sustainability reports.
The left bottom corner of the materiality matrix includes the list of issues that we have assessed but do not find material enough to report our performance on in this report. These issues are less material to our stakeholders but are still being monitored and/or managed by CCI.
Aspect Boundaries G4-20
During the materiality analysis we conducted with the senior managers, we assessed the issues not only for our own operations, but also for the operations of other stakeholders in the supply chain, namely suppliers, distributors and customers. While conducting this assessment, we took into account our influence on the issue. For example, energy efficiency and GHG emissions are important both for our own operations and for our customers. We help our customers to reduce their energy consumption by offering them energy-efficient coolers. Another area where we have direct influence is the health and safety performance of our contractors. We actively manage and closely monitor both of these issues. In addition, there are other issues where we do not have direct influence, such as those issues managed by TCCC. For example, child labor and biodiversity during agricultural operations of our suppliers are managed by TCCC through Supplier Guiding Principles (SGP) audits conducted by third parties. Detailed information is available on page 21. In the matrix on the previous page, the issues that are also material for our supply chain and where we have influence have been indicated in red. Information on our efforts and performance on these issues are also available in this
Stakeholder Engagement G4-24, G4-25, G4-26, G4-27
At CCI, we believe in the importance of stakeholder participation in running our business. We aim to develop long-term relationships with our stakeholders. By holding open dialogues and maintaining transparency in all our dealings, we foster a participative environment where our stakeholders are encouraged to engage in the management of our business. We conduct our stakeholder engagement efforts within the framework of international principles and standards such as AA1000 Accountability Principles. We inform our stakeholders about our sustainability efforts through various communication channels, including our website and annual sustainability reports. Through a stakeholder mapping and prioritizing exercise within the context of sustainability reporting, we identified our key stakeholders as: investors, NGO’s, opinion leaders, shareholders, financial institutions, our employees and the TCCC system. For business continuity, we also engage regularly and intensively with other stakeholders including our distributors, customers and suppliers.
Investors NGOs Opinion leaders Shareholders Employees TCCC System Distributors/ Sellers Customers Suppliers
Annual report, investor conferences, analyst meetings, investor presentation, webcast, Investor Relations department, e-mail distributions, special case announcements, Public Disclosure Platform, direct feedback forms through CCI’s corporate website, sustainability report, Carbon Disclosure Project report
Project partnerships, corporate and employee memberships, participation in conferences and presentations, Reputation Survey, Stakeholder Panel
Reputation Survey, sustainability report, External Stakeholder Review Committee
General Assemblies, website, Public Disclosure Platform (PDP)
Employee Engagement and Satisfaction Survey Newsline, Newsletter, CokePort, 2020 Vision (CCI Turkey Magazine), press reports, CCI training programs, leadership development trainings, sales incentive programs, Reputation Surveys, CCI Community Champions, Reputation Survey
Regular meetings and TCCC’s Sustainability & Public Affairs & Communication Summits
Distributor satisfaction survey, distributor meetings, process improvement studies, regular visits, training programs, plant visits, distributor portal, CCI Call Center
Trainings, support programs, regular visits, plant visits, Coca-Cola Customer Road Show, Customer Satisfaction Survey, CCI Call Center, focus group studies.
Training programs, improvement audits, plant visits, supplier days, supplier performance scores, supplier surveys, cooperation portal, Green Supplier Awards, industrial development and pilot activities.
Regularly and often Regular Regular Regular Regular Regularly, very often Periodic Periodic Regular
CCI’s financial and operational performance, future investment plans. Example: We expect to be included in the BIST Sustainability Index.
CCI’s operational, environmental, quality and community-related performance, transparency and reporting.
CCI’s operational, environmental, quality and community related performance.
Example: We are expected to respond to the Water Disclosure Project’s questionnaire.
Financial and operational performance and reporting. Business results, environmental performance, community projects, awards & recognitions, compensation and benefit topics, training &
development, performance evaluation.
Example: In the 2013 Reputation Survey, one improvement area was identified as “supporting more sportive and healthy life activities at CCI.” Global 2020 Sustainability Goals were shared.
A carbon footprint calculation pilot study was presented.
Business performance, commercial plans, training & development, engagement scores.
Business performance, commercial plans, products, marketing plans.
Quality of the materials and services, future plans, strategic initiatives, business performance, sustainability, workplace rights.
Engagement Platforms Frequency of engagement
Examples of issues that were brought up by stakeholders in 2013 Stakeholders
16 Coca-Cola İçecek Sustainability Report 2013
Local community Public Institutions and Organizations Union Consumers Sector Groups Society Media Stakeholder Survey
Information for contribution to sector development, full compliance with the laws and regulations, support regarding infrastructure investments, Reputation Survey, Environment Days, Presentations.
Union representation, collective labor agreements, representative meetings, plant visits.
Coca-Cola Social Interaction Center, informative publications, plant visits, product labels.
Corporate memberships, joint projects, participation in meetings.
Coca-Cola “I Wonder” Platform, donations, plant visits, voluntary practices, product labels, advertisement and marketing activities, social engagement projects, field studies, meetings, survey and eliciting opinions, sustainability reports.
Periodical information, statements, support programs, regular visits, plant visits, Reputation Survey. Annual Annual reputation survey, regular meetings Regular Regular Regular Regular Regular
• CCI’s operational, environmental, and quality and community related performance.
• Sponsorship and donation requests • CCI’s operational, environmental,
and quality and community related performance, compliance with regulations.
• Expertise sharing in public conference.
• Human rights
• Product quality, consumer satisfaction, promotion campaigns.
• Industry wide issues, regulations, compliance with regulations, sustainability initiative. • Benchmark visits in the plants. • Products, marketing and promotion
campaigns, product ingredients. • Plant tour and visit requests.
• Products, marketing and promotion campaigns, product ingredients. • Sustainability performance and
community support.
Dialog Platform Frequency of engagement
Examples of issues that were brought up by stakeholders in 2013 Stakeholders
INTEGRATING SUSTAINABILITY
Our Corporate Memberships
CCI continued in 2013 to be a member of the following NGOs: • ÇEVKO (Environmental Protection and Packaging
Waste Recovery and Recycling Trust)
• TÜSİAD (Turkish Industry and Business Association) • YASED (International Investors Association) • MEDER (Beverage Industry Association) • KALDER (Turkish Quality Association) • DEİK (Foreign Economic Relations Board)
• SUDER (Packed Water Manufacturers Association)
• TOBB (The Union of Chambers and Commodity Exchanges of Turkey)
• TGDF (Federation of Food and Drink Industry Associations of Turkey)
• Brand Protection Group
By taking part in business NGOs and sector NGOs, we follow reputational and regulation related topics. Additionally, as one of the founding members and
18 Coca-Cola İçecek Sustainability Report 2013
External Recognition
CCI is Included in the United Nations Global Compact 100 Index
CCI became the first and the only company in Turkey and within the Coca-Cola system to be included in the United Nations Global Compact 100 Index (GC 100), a new stock index of companies selected based on their adherence to the
Global Compact’s ten principles as well as evidence of executive leadership commitment and consistent base-line profitability. Among nearly 8,000 members of the Global Compact, 713 companies were
considered and assessed worldwide for the index and 100 were selected. The GC 100 tracks the three-year stock market performance of these companies, comparing the results against the broad market benchmark FTSE All-World. The data for total returns shows that there appears to be a correlation between a commitment to corporate sustainability practices and stock performance.
CDP
CCI was recognized as one of Turkey’s carbon disclosure and performance leaders by the CDP in its “Turkey 100 Climate
Change Report 2013.” As many as 4,000 companies around the world participate in the CDP each year, with 36 companies participating in Turkey in 2013. The four top-ranking of CDP participant companies were declared as carbon disclosure leaders in Turkey while the seven companies with the highest performance rating were selected as performance leaders. CCI was also awarded as one of Turkey’s top two carbon performance leaders in 2012 and cited among Turkey’s top five carbon disclosure leaders in 2011.
TCCC Sustainability Awards
TCCC Eurasia and Africa Group President’s
Sustainability Awards for 2014 were held in Istanbul in June. This year, our Azerbaijan, Jordan and Kazakhstan operations were among the 10 finalists selected from a pool of 92 Eurasian and African countries competing for the Best Country Bottling Operation Grand Prize. Finalists are selected based on their performances in product safety & quality, environmental standards, occupational safety requirements, and contribution to society. CCI’s Ankara and Izmir plants in Turkey repeated their successes from last year, with Ankara being awarded as the Best Performing Plant for Quality and Izmir as the Best Performing Plant for the Environment.
Initiatives we Are Signatories To
• CDP
• United Nations Global Compact
• Turkish Climate Platform – Turkish Climate Change Leaders Group
• The 2°C Challenge Communiqué of the Prince of Wales’s Corporate Leaders Group
• Equality at Work Platform established by the Ministry of Family and Social Policies of Turkey within the scope of the World Economic Forum: Closing Gender Equality Gap Program.
SUSTAINABILITY ACROSS THE
vALUE CHAIN
TCCC sources ingredients, and manufactures and sells concentrates, beverage bases and syrups to bottling operations, including CCI. TCCC owns the brands and is responsible for consumer brand marketing initiatives.
As one of the 250 bottling partners of the TCCC worldwide, CCI manufactures, packages, merchandises and distributes the final branded beverages to our customers who then sell our products to consumers. We work closely with our more than 650,000 customers and more than 300 distributors in the 10 countries where we operate. More than 370 million consumers enjoy our products. We purchase ingredients and packaging material
from the “strategic suppliers” selected and authorized by the TCCC.
Meeting the expectations of our stakeholders at every level of our business is our top priority. With this understanding, we give great importance to quality in every stage of our business – from procuring raw materials to marketing finished products. Therefore, we work in compliance with universal rules of the TCCC system and consider regional characteristics of the geographic areas in which we operate. We expect our business partners, namely our suppliers and distributors, to comply with the TCCC Standards and engage only with those that display the best environmental, social and economic performances.
PACKAGING AGRICULTURAL INGREDIENTS MANUFACTURING LOGISTICS AND TRANSPORT REFRIGERATION ENJOYING BY CONSUMERS
20 Coca-Cola İçecek Sustainability Report 2013 Our Suppliers Our Distributors Our Customers Our Operations To conduct a “Supplier Satisfaction Survey” within the scope of C4E.
To attain a success rate of 84% for the SGP audits in Turkey, Azerbaijan, Kazakhstan, Jordan. To continue to develop the capabilities of our distributors.
To improve our customer satisfaction and service levels.
To continue implementing the OE Model.
To launch the C4E Program in Turkey aimed at reviewing, redefining and improving our processes to better align our management system with the EFQM Model.
To prepare our Turkey plants for external EFQM assessments.
We conducted for the first time a Supplier Satisfaction Survey where our
suppliers evaluated CCI’s performance.
The success rate was 84% for these four countries.
In 2013 we conducted three specific “Distributor Business Development” trainings aimed at owners, sales representatives and all employees of distributors. We measured and analyzed gaps between customer expectations and current levels of service. Then, we focused on improving specific areas of service. We included for the first time our distributors in an OE project.
We developed an action plan for “Sales Force Capability Development” program.
We implemented the objectives defined under the C4E Program at our Turkey plants to prepare them for external EFQM assessments.
To conduct a Supplier Satisfaction Survey in 2015.
To attain a success rate of 88% for the SGP audits in Turkey, Jordan, Kazakhstan and Azerbaijan.
To continue conducting training programmes for our distributors.
To achieve a customer satisfaction performance score which is higher than the average score of our competitors.
To continue involving our distributors in new OE projects.
To implement the “Sales Force Capability Development” program and increase the organizational capability in our countries of operation.
To receive external EFQM assessments at two of our plants in Turkey and to apply for the Kalder National Quality Award.
2013 Goals Performance in 2013 Status Commitments for 2014 Priority Areas
A
Achieved Partial Ongoing Not Achieved
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Our Suppliers
Our suppliers are our business partners who provide us with materials (including ingredients), packaging, machinery, and other goods and services.
Most of our products are produced with concentrates supplied by the TCCC. Our strategic suppliers are those which are authorized suppliers of TCCC, supplying sugar, juices, and carbon dioxide that make up our products. Our packaging materials – aluminum, PET plastic, corrugated cardboard and shrink wrap – are also provided by these strategic suppliers.
Materials Used
The key materials that form our products fall under two broad categories, namely packaging materials and ingredients. Ingredients are renewable materials such as concentrate and beverage base, sugar and CO2. Packaging materials can be either renewable or non-renewable and include steel crowns, PE closure, PET preform and resin, glass, aseptic carton packaging, aluminum cans, can ends and more. Once a product is bottled, it is shrink wrapped in plastic for transportation. In some cases plastic crates and wooden pallets are used. (Please see “Performance Indicators” section for a detailed “Materials Used” table.)
Supplier Guiding Principles
Our Workplace Rights Policy (WRP) and Supplier Guiding Principles (SGP) communicate our values and expectations of suppliers. Furthermore, they emphasize the importance of responsible workplace practices that respect human rights and comply, at a minimum, with applicable environmental and local labor laws along with core international conventions. These laws and regulations include, among others, those that address working hours, compensation, working conditions and the rights of employees to choose whether to be represented by third parties and to bargain collectively.
Our SGP are a part of all agreements between TCCC and its direct and authorized suppliers. We expect our suppliers to develop and implement appropriate internal business processes to ensure compliance with the SGP. TCCC routinely utilizes independent third parties to assess supplier compliance with the SGP;
these assessments include confidential interviews with employees and on-site contract workers. If a supplier fails to uphold any aspect of the SGP requirements, that supplier is expected to implement corrective actions. TCCC reserves the right to terminate an agreement with any supplier that cannot demonstrate that they are upholding the SGP requirements.
Of the 43 direct suppliers in Turkey who were audited in 2013 for compliance with SGP, 88% of them passed without any major issues, such as concerning overtime. In Kazakhstan, Jordan and Azerbaijan, 12 direct suppliers were audited with a success rate of 67%. Overall, the average success rate for SGP audits of suppliers in Turkey, Azerbaijan, Jordan and Kazakhstan was 84%. For identified issues, an action plan for remediation was sent and follow-up visits will be organized.
Supplier Satisfaction Survey
In line with our 2020 Vision and within the framework of our C4E Program, we conducted a supplier satisfaction survey for the first time in 2013. Our overall goal with the survey was to improve collaboration with our suppliers by creating a platform where we can learn their opinions and welcome their suggestions for a better and more effective business relationship. More specifically, we aimed at identifying reciprocal improvement areas and to take actions to improve these areas. Our suppliers assessed CCI under four categories: Tendering and Order Management, Payments, Approach, and Communication. We have been conducting supplier assessments for many years, but this was the first time where our suppliers had the chance to assess us.
We achieved an overall score of 84%, and we see this as an indication that our suppliers are mainly satisfied with CCI. For those areas identified as requiring improvement, we have already begun taking action. We aim to conduct this survey every two years to measure the strength of collaboration with our suppliers and to improve our already existing strong business relationship with them.
22 Coca-Cola İçecek Sustainability Report 2013
Supplier Compliance with Standards Just as our plants are required to hold one of the certificates recognized by the Global Food Safety Initiative (GFSI), so are our strategic suppliers. Therefore regarding food safety, all our authorized strategic suppliers hold a relevant and current certificate such as FSSC 22000. Suppliers that hold FSSC 22000 certificate are also required to have ISO 9001 Quality Management Systems in place.
Our distributors
Distributors are our main business partners and, as such, they play a critical role in our sales operations. Consequently, we focus on developing their
capabilities and satisfying their business needs. In Turkey we work heavily with distributors, while in our countries of operation where distributor networks are not common, we work with 3rd party partners. In Turkey we conduct around 75% of our distribution operations through our distributors. The responsibilities of our distributors include
warehousing, order taking, distribution, invoicing and collection. Some of our distributors even generate orders and conduct merchandising and account management activities, working in tandem with
our sales teams. These sustainable and long-term relationships benefit us in many ways, including 100% market sales monitoring.
As per the end of 2013, we work with 302 distributors in Turkey. Distributors are our strategic business partners and we share our know-how and expertise with them. We support them in building the same high-quality systems at their end. Our overall goal is to bring our business partners up to our standards while we hand over to them our distribution responsibilities. In 2005 we developed a Distributor Handbook, which explains in detail the minimum requirements according to our standards. We provided training to their employees on the main topics included in the Handbook. In addition, we also developed a checklist Contribution to Local Economy
At CCI, we are committed to making direct and indirect contributions to local economies where we carry out our operations. The proportion of spending on local suppliers (within the same country) for raw materials is provided in the table below. In Jordan we switched to local suppliers for sugar, can and preform in 2013, which resulted in an increased percentage.
TCCC’s Green Supplier Awards
We work collaboratively with our suppliers to foster innovative practices and attain sustainable solutions. The Coca-Cola Green Supplier Awards serve this aim while inspiring and motivating us towards our 2020 Vision.
In 2013 we launched the Green Supplier
Awards in Turkey where our suppliers are
recognized and awarded for their exemplary
work in the fields of water stewardship,
energy management, waste management,
and innovation across the value chain. Seven
distinguished jury members, each of them are subject matter expert in their areas, assessed 21
applications in detail and named the winners. We plan to conduct the next Green Supplier Awards in 2015.
Environmental and Health and Safety Certificates of Our Suppliers:
• 80% of the plants of our strategic suppliers have been awarded a certificate for ISO 14001 Environmental Management System.
• 65% of the plants of our strategic suppliers have been awarded a certificate for OHSAS 18001 Health and Safety Management System.
2013 2012
* Concentrate is not included.
** In Jordan we switched to local suppliers for sugar, can and preform in 2013, which resulted in an increased percentage. *** There are no approved suppliers in these local markets for some product and service categories.
96 96 68 20 17 12 48 41
Local Procurement % Turkey* Jordan** Kazakhstan*** Azerbaijan***
Note: This data refers to the 20 plants of our top 10 strategic suppliers who supply us with packaging materials and ingredients.
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that we use while conducting audits. This checklist is based on the Coca-Cola Company’s Management System (TCCMS) and contains requirements on health and safety, requirements for warehousing and technological infrastructure. We conduct regular audits for our distributor. The scores of the audits are evaluated together with the customer satisfaction survey results, and both of them contribute to the result of the “Distributor Service Quality Assessment.” To improve our business relations with our
distributors, we engage with them on different platforms such as our Customer Interaction Center, Distributor Business Development Projects and Distributor Engagement Surveys where we learn about their needs, wishes, and complaints. Throughout 2013, we focused on the Distributor Business Development Projects, holding meetings with our distributors to find out from them “what can CCI do better for you?”. After collecting the responses, we developed action plans.
In 2013, we developed projects under the three broad categories: People, Business Support, and Technology. Under the “Technology” category, we developed a Distributor Portal whereby distributors have access to all business-related documents and financial statements. It is a unique share point for CCI and our distributors, creating the possibility for online communication with logistics and financial advisors. Under this platform, our distributors can also share their best practices with their peers.
Another initiative we developed within the “People” dimension of the Distributor Business Development Project is a series of capacity-building trainings which we provide to the owners and employees of our distributors. In 2013, we provided a three-hour training program, “It’s Your Turn,” to around 2,142 employees of our distributors. Other training programs we
In 2014, we aim to increase the number of participants in these capability-building programs in 2014.
To evaluate the satisfaction level of our distributors, a third-party service provider conducts a Distributor Satisfaction Survey including an evaluation of our company image. The results of these surveys for the last three years are provided in the table below.
Our Customers
Our customers – supermarkets, restaurants, convenience stores, hotels, and other retail outlets – totaled approximately 650,000 in 2013 in all CCI countries of operation. We have access to more than one million retail points of sale.
We use promotional campaigns and event-based marketing activities to promote customer relations. We continue to invest in coolers to help our
consumers gain access to cooled products, and we conduct development programs and quality system inspections for our customers.
CCI Customer Engagement Studies Increasing the level of satisfaction amongst our customers is a key factor in achieving our 2020 Vision objectives. We aim to develop strategies that focus on maximizing customer satisfaction. To this end, we apply a holistic approach to customer engagement. In countries such as Turkey where we have strong distributor channels, we include evaluations of our distributors’ customers in our customer engagement studies. With this approach we create the chance to broadly assess the level of satisfaction and learn about the expectations of our customers. The results of these engagement surveys help us identify improvement areas against which we develop action plans. An independent research company conducts these surveys by telephone, questionnaires and face-to-face meetings.
To engage with our customers, we use the following: • Annual Customer Satisfaction Surveys
Satisfaction Score Company Image 76.0 81.6 83.8 89.2 84.0 88.4 Distributor Satisfaction Survey 2011 2012 2013
